https://www.fool.com/investing/2023/07/11/why-verizon-should-cut-its-dividend/
5 replies (most recent on top)
What's happening is that Verizon has a lot of debt. With recent interest hikes, Verizon can't get loans at the low repayment rate they used to be able to do. Basically using a credit card to pay off a credit card.
The company realizes that outsourcing to save money for IT and CS saved some labor costs, but they're running out of people to cut to prop the expenditures in the short run. Verizon pulled a Bud Light and "leadership" doesn't realize it. Americans don't like low quality (language and cultural) service from people out of the US and customers are responding by leaving.
Going back to the dividend, Verizon needs to cut it. The company doesn't issue enough shares to make up for the dividend cost. When people buy shares, they're buying from other people who are selling their shares, so Verizon doesn't make money unless they issue more shares. The dividends are a net negative since any money that came in from the issuing of new stocks in the past has already been spent and Verizon is in a hole.
The people at the top won't cut it, since it will tank (even more) the stock price since the market will see this as Verizon being in financial trouble. These are the same people who have millions of salary in Verizon stock as their compensation. Knowing they're on the way out, they do not want to do it. The next CEO won't do it since they don't want to come in and tank the stock right away and have it be on them.
Verizon lost the customer when they outsourced. They lost the employee when they took advantage of them financially and didn't capitalize on the talent when they had it.
The motley fool is well named. They are just trying to drive down the stock price so the big boys can buy more. They know Vz will never cut the dividend.
AT&T and Verizon will declare bankruptcy within 12 months.
Post ID: @mkp+1nBDpBbd
Agree!! Cut the corporate stock dividend then share is $10/share just like Ma Ball, AT&T.
Verizon does not need to cut its iconic dividend. That is a loser move. What they need to do is cut loose all of the losers that have been involved in executive decisions since McAdam and his WEF BS.
The company has lost its focus on its core competencies because it is managed by incompetent managers at the executive level who do not understand what the customer needs and what they are willing to pay for it.